IMPORTANCE OF PUBLIC WAREHOUSE SYSTEM FOR FINANCING AGRIBUSINESS SECTOR
No hay miniatura disponible
Fecha
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
The aim of this study was to determine the economic viability of the use of warehouse receipts
for the storage of wheat and corn, based on the analysis of trends in product prices, storage
costs in public warehouses and interest rate of loans against warehouse receipts.
Agricultural producers are urged to sell grain at the harvest time when the price of
agricultural products is usually lowest, mostly because of their needs for financial sources.
Instead of selling products, farmers can store them in the public warehouses and use shorttime
financing by lending against warehouse receipt with usually lowest interest rate. In
following months, farmers can sell products at higher price and repay short-term loan.
This study showed that strategy of using public warehouses and postponing the sale of grains
after harvest is profitable strategy for agricultural producers.